Ambika Oversaes Project

7/27/2019 Ambika Oversaes Project

1/70

1

Chapter-1


2/70

Wages, payment received by an employee in exchange for labor. It may be

in goods or services but is customarily in money. The term in a broad sense

refers to what is received in any way for labor, but wages usually refer to

payments to workers who are paid by the hour, in contrast to a salary,

which implies a more fixed and permanent form of income (e.g., payment

by the month rather than by the hour). In economic theory, wages reckoned

in money are called nominal wages, as distinguished from real wages, i.e.,

the amount of goods and services that the money will buy. Real wages

depend on the price level, as well as on the nominal or money wages.

wages, payment received by an employee in exchange for labor. It may be

in goods or services but is customarily in money. In economic theory,

wages reckoned in money are called nominal wages, as distinguished from

real wages, i.e., the amount of goods and services that the money will buy.

Real wages depend on the price level, as well as on the nominal or money

wages. wages, payment received by an employee in exchange for labor. It

may be in goods or services but is customarily in money. The term in a

broad sense refers to what is received in any way for labor, but wages

usually refer to payments to workers who are paid by the hour, in contrast to

a salary, which implies a more fixed and permanent form of income (e.g.,

payment by the month rather than by the hour). In economic theory, wages

reckoned in money are called nominal wages, as distinguished from real

wages, i.e., the amount of goods and services that the money will buy.Thus

Real wages depend on the price level, as well as on the nominal or money

wages.

2

INTRODUCTION


3/70

Economic Theories about Wages

Many theories have been advanced to explain the nature of wages. The first

of them was the subsistence theory of wages, also called the iron law of

wages, of which David Ricardo was one of the main exponents. The theory

maintains that wages cluster around the bare subsistence level of workers. A

wage rate much above the subsistence level causes an increase in the

number of workers; competition will then lead to a depression of wages

back toward the cost of subsistence. Wages that are below subsistence

reduce the size of the working population; in that case competition will

raise wages, but only up to the subsistence level again.

In the surplus-value theory as propounded by Karl Marx, the value

produced by the worker in excess of what is paid in wages is called surplus

value. The surplus value, exacted from the worker, constitutes the

capitalist's profit. The wage-fund theory is that wages are advanced out of a

fixed fund of capital, from which an excess withdrawal, either through

legislation or through union pressure, will ultimately reduce the amount

available for other workers. Any increase in wages would also have to be

taken out of profits, and their reduction would cause a decline in savings.

The marginal-productivity theory maintains that employers will only pay a

wage that is, at most, equal to the amount of extra value added to the totalproduct by one additional worker. The bargaining theory modifies the

marginal-productivity theory by taking into consideration other factors (e.g.,

laws and social and political changes) that might affect the determination of

3
http://www.answers.com/topic/david-ricardohttp://www.answers.com/topic/karl-marxhttp://www.answers.com/topic/david-ricardohttp://www.answers.com/topic/karl-marx


4/70

wage levels and by acknowledging that certain basic assumptions (equal

bargaining power of employer and employee, free competition ).

4


5/70

Wages in the widest sense mean any economic paid by the employer under

some contract to his workers for the services rendered by them. Wages

therefore include family allowance, relief pay ,financial support and other

benefits. But in the narrow sense, wages are the price paid for the services

of labour in the process of production and include only the performance

wages or wages proper.

Under the payment ofWages Act 1936, Section 2 (VI), any award of the

settlement and production bonus, and good conduct bonus.

But under the payment of Wages Act, 1948, retrenchment compensation,

payment in lieu of notice and gravity payable on discharge constitute wages.

The following type of remuneration, if paid does not amount to

wages under any of the Acts:

Bonus or other payment under a profit sharing scheme which do not

form a part of the contract of employment.

Value of any house accommodation, supply of light, water, medical

attendance, travelling allowance, or payment in lieu there of on any other

concession.

Any sum paid to defray special expenses.

Any contribution to pension, provident fund

Any other amenity or service excluded from wages.

5

CONCEPT OF WAGE


6/70

CONCEPT OF WAGESRULES, 1937

1. Short title- These rules may be called the Payment of wages(Producer) Rules, 1937

2. Definitions - In these rules, unless there is anything repayment in the

subject or context,

(a) The Act means the payment of wages Act (4 of 1936)

(b) Appeal means an appeal under Section 17;

(c) The Authority means the authority appointed under Sub-Section (1) of

Section 15

(d) Employer includes the persons responsible for the payment of wages

under section 3;

The basic purpose of wage administration is to establish and maintains

an equitable wage structures. Its secondary objective is the establishment

and maintenance of an equitable labours cost structure i.e. an optional

balancing of conflicting personal interest so that the satisfaction of

employees and employers is maximized and conflicts minimized.

OBJECTIVES OF WAGE PAYMENT:

a) For Employees.

To pay the employees according to theirjob requirements.

To minimize the chances offavoritism.

To establishjob sequences and lines of promotions wherever they

are applicable.

To increase the employees morale and motivation.

6


7/70

b) For Employers:

To systematically plan for and control theirlabour costs.

To deal with a trade union, by explain the basis of their wage

programme.

To reduce the likelihood of friction and grievances over wage

inequities.

To attracts qualified employees by ensuring an adequate payment

for all the jobs.

THEORY OF WAGES

Different methods of wage payment are prevalent indifferent industries and

various countries. There may be payment by time or payment by results.

Wages are fixed mainly as a result of individual bargaining,

collective bargaining or by public or State regulation. The main elements in

these theories may be summed up as follows.

Subsistence Theory

This theory also known as Iron law of Wages was propounded by

David Ricardo(1772-1823). This theory states (1817) that The labourers

are paid to enable then to subsist and per perpetuate the race without

increase or diminution.

Wage fund theory

This theory was developed by Adam Smith (1723-1790). His basic

assumption was that wages are paid out of a pre-determined fund of wealth

which lay surplus with wealthy persons as a result of savings.

7


8/70

The Surplus Value Theory of Wages:This theory owes its development of "Karl Marx" (1849-1883).

According to this theory the labour was an article of commerce, which

could bepurchased on payment of subsistence price'. The price of anyproduct was determined by the labour time needed for producing it.

Residual Claimant Theory

Francis A Walker (1840-1897) propounded this theory, According to

him, there were four factor of production / business activity, viz., land,

labour, capital and entrepreneurship, In other words, labour is the residual

claimant.

Marginal productivity theory

This theory was developed by Phillips theory Wicksteed (England)

and John Bates Clark (USA). According to this theory, wages are based

upon the entrepreneurs estimate of the value that will probably be produced

by the last or marginal workers.

The Bargaining Theory of Wages

John Davidsonpropounded this theory. Under this theory, wages are

determined by the relative bargaining power of workers or trade unions and

of employees.

Behavioural Theories

Many behavioral scientists-notably industrial psychologist and

sociologist like Marsh and Simon, Robert Dubin have presented their

views or wages and salaries, on the basis of research studies and action

programmes conducted by them. Briefly such theories are.

The Employees Acceptance of a wage level

The Internal wage structure

8


9/70

Wages and Salaries and Motivators.

Statutory Minimum Wages

It is the wage determined according to the procedure prescribed by

the relevant provisions of the Minimum Wages Act, 1948. Once the rates

of such wages are fixed, it is the obligation of the employees to pay them,

regardless of his ability to pay.

Bare or Basic Minimum Wages

It is the wage which is to be fixed in accordance with the awards and

judicial pronouncement of Industrial Tribunals, National Tribunals and

labour Courts.

A minimum wage has been defined by the committee as

the wage which must provide not only for the bare sustenance of life, but

for the preservation of the efficiency of the worker. For this purpose, the

minimum wage must provide for some measure of medical requirement,

education and amenities.

Living wage

This wage was recommended by the committee as a fair wage and as

ultimate goal in a wage policy. It defined a living wage as," one which

should enable the earner to provide for himself and his family not only the

bare essentials of food, clothing and shelter but a measure of frugal comfort,including education for his children, protection against ill-health,

requirements of essential social needs and a measure of insurance against

the more important misfortunes, including old age

9

MINIMUM, FAIR AND LIVING


10/70

Fair Wage:-

According to the Committee on fair Wages, it is the wage which

is above the minimum wage but below the living wage. The lower limit of

the fair wage is obviously the minimum wage; the upper limit is set by the

"capacity of the industry to pay. Between these two limits, the actual

wages should depend on consideration of such factors as:-

(a) The productivity of labour ;

(b) The prevailing rates of wages in the same or neighboring localities

(c) The level of the national income

(d) The place of industry in the economy of the country.

10

LIVING

MINIMUFAIR

WAGE RATE


11/70

TYPES OF WAGES

Time Wage:-This is the oldest and the most common method of fixing wages.

Under this system, workers are paid according to the work done during a

certain period of time, at the rate per hour, per day, per week, per fortnight

or per month or any other fixed period of time. The essential point is that

the production of worker is not taken into consideration in fixing the wages;

he is paid at the settled rate as soon as the time contracted for is spent.

Piece Wage

Under this system, workers are paid according to the amount of

work done or the number of units completed, the rate of each unit being

settled in advance, irrespective of the time taken to do the task. This does

not mean that a worker can take any time to complete a job because if his

performance far exceeds the time, which his employer expects, he would

take the overhead charge for each unit of article, will increase. There is

implication that a worker should not take more than the average time.

Balance or Debt Method:

This is a combination of time and piece rates, the worker are

guaranteed an hourly or a day-rate with an alternative piece rate. If the

earnings of the worker calculated at a piece rate, exceeds the amount which

he would have earned if paid on time basis, he gets credit for the balance

i.e., the excess piece rate earnings over the time rate earnings.If his piece

rate earnings are equal to his time rate earnings, the question of excess

payment does not arise. Where piece rate earnings are less than time rate

11


12/70

earnings, he is paid on the basis of the time rate; but the excess which he

paid is carried forward as a debt against him to be recovered from any

future balance of piece work earnings over time work earning.

Wage differentials

Wages differ in different employments or occupations, industries and

localities and also between person in the same employment or grade. One

therefore comes across such term as occupational have been classified into

three categories:

First the differentials that can be attributed to imperfections in the

employment markets, such as the limited knowledge of work in regard to

alternative job opportunities available elsewhere.

Second, the wage differentials, which originate in social values and

prejudices and which, are deeper and more persistent than economic factors.

Third, occupational wage differentials which would exist even if

employment market were perfect and social prejudices were absent.

In other words, wage differentials may be(i) Occupational differentials

(ii) Inter firm differentials

(iii) Inter area or regional differentials.

(iv) Inter-industry differentials ; and

(v) Differentials based on Sex.

12


13/70

INGREDIENTS OF A GOODWAGE PLAIN

It should be easily understandable

It should be capable to easy computation

It should be capable of effectively motivating the employees.

It should provide for remuneration to employees.

It should be relatively stable.

It should be step of sound wage administration polices.

There should be scientific system for fixing standard work load.

Workers should participate in the management.

There should be guarantee of minimum wage payment to every worker

per month.

13


14/70

An incentive can be anything that attracts a workers attention and

stimulate him to work. It is a plan used to encourage workers for raising

their performance and incentives are provided for increase in production

beyond a certain level, completing a work in less time then normally

allowed, improving quality products etc these plans verified both employees

and employers. The formal gets more wages and the latter are successful in

reducing overhead cost per unit of output.

Salient or essential features of incentive schemes

Following are the salient features to be understood in any incentive

schemes:

1. It should be easily understood and the amount of benefits should be

really assessed.

2. It must benefit employees as well as employers.3. It must have relation between the benefits to the employees in

relation to their efforts.

4. It should not be too costly to adopt to operate

it should stimulate the interest among employee.

5. It should stimulate the cooperation among the employees.

6. It should not be detrimental to the welfare of employees.

7. It should assist in supervision.

DEFINITION OF INCENTIVE SCHEMES:

14

CONCEPT OF INCENTIVE


15/70

An incentive scheme is a plan or a programme to motivate individual or

group performance. An incentive programme is most frequently build on

monetary rewards but may also include a variety of non-monetary

awards or prizes. BURACK SMITH

Wage incentive scheme refers to all the plans that provide extra pay for

extra performance in addition to regular wages for a job HUMMEL

OBJECTIVES OF WAGE INCENTIVE SCHEMES:

To improve the profit of a firm through a reduction in the unit cost of

labour and materials or both

To avoid additional capital invest for the expansion of production

capacity.

To increase a workers earnings without dragging the film into a

higher wage rate structure regardless of productivity.

To use wage incentive as a useful tool for securing a better utilization

of manpower, better production scheduling and performance control

and a more effective personnel policy.

Incentive schemes

Incentives are the stimulus mainly psychological and it maintains and

strengthens the desire to achieve improved performance. Incentives are

mainly of two types:

Financial incentives

Non-financial incentives

15


16/70

Financial incentives helps the individuals to meet their basic needs and

non-financial incentives assist in meeting the higher order needs such as

social needs, ego needs and self actualization needs. Non-financial

incentives are based on sociological and psychological to principles of

higher behaviour.

FINANCIAL INCENTIVES:

These incentives are payments for improved productivity attendance and

general improvement in employees performance. These schemes can be

direct or indirect in nature. In direct financial incentive scheme, The

payments are based on employees own performance or contribution to the

job such as production incentive schemes , attendance bonus, profit sharing

bonus etc. The case of indirect financial incentives schemes, the payments

are not directly related to employees contribution & schemes are like

subsidized means such as leave enactment, gratuity scheme, leave

concession scheme, canteen facilities at subsidies rates.

OBJECTIVES

Following are the objectives for which incentive schemes can be used:

a) To increase the production, productivity yields manpower utilization

earning of the employee sales and quality.

b) To improve quality, reduced inventory and reduced wastage.

ADVANTAGES

Following are the various advantages of financial incentives:

1. Achievement of higher production.

16


17/70

2. Lesser breakdown and defective work.

3. Cutting down the cost of production.

4. Opportunity for higher earnings to employees.

5. Reducing the supervision time.

6. Effective use of manpower planning.

DISADVANTAGES

The incentive schemes are not free from disadvantages. following are the

disadvantages of incentive schemes:

1) Lack of consistency

2) Psychological problems in the incentive systems.

3) Delay in the payment of schemes.

NON FINANCIAL INCENTIVES

These are generally introduced as a normal practice in good management.

These elicit from employees sense of belongings and their importance is not

to be underestimated. The non-financial incentives touch the inner feelings

of employees and brings out a response much more impressive than could

be possible throughfinancial incentives which are outcome of enlightened

management. The provision of better working conditions, encouragement

and appreciation of good work and atmosphere of willingness and

cooperation in dealing with common problems are all those contributed to

excellence in financial incentives schemes and the acceptance of workmen

bring a radical change in industrial relations management often is faced

with a challenge when they introduce incentive schemes. for the incentives

schemes to be effective, management must insure that they will be able to

17


18/70

do good to the management and the workers alike one of the studies carried

out in a public undertaking revealed that after 4-5 months of introduction of

schemes; following results are achieved

Increase in production 20%

Increase in productivity 15%

Reduction in rate of accidents 60%

In addition to above, there was improvement in attendance in

morale, willingness to work and enforcement for increasing production. We

have seen that incentives plans provide for higher reward for increased

output. The main objective is to increase the production by giving an

inducement to workers in form of higher wages. An effective incentive plan

must provide for minimum guaranteed wages.

Some of the non-financial incentives are:

Welfare measures

Social and sports activities

Educational opportunities

Suggestion schemes

Meritorious service awards

Sound performance appraisals

Promotional policies

Better working conditions

Creation of healthy organizational plan ing and development

Knowledge of results growth opportunities in the organization

18


19/70

Recognition

19


20/70

20

Chapter-2


21/70

BACKGROUND:

Born in the year 1984,THE HIND SAMACHAR A FLEDGING

NEWSPAPER has empowered into THE HIND SAMACHAR GROUP

OF NEWS PAPER. At present it encompasses Punjab Kesari in Hindi,Jag

Bani in Punjabi and Hind Samachar in Urdu being publishedfrom 3 centres-

Jalandhar,Ambala and Deli . It reaches out to a total of a lacs plus

readership families daily. Punjab Kesri alone touches the lives of 13 lakh

families making it the top selling Sunday Newspaper.

HISTORY AND EXISTANCE :

The journey of the eteemed daily begins when thefouner person LATE

LALA JAGAT NARAIN gave in dependent India what he termed ANINDEPENDENT NEWSPAPER He was born on 31st may 1899,he was

ofgreat imaginative mind and deep love for his country since childhood.

Lala Ji was sent to jail first time in 1921,wherehe metLala Lajpat Rai. In

1924 when Lala Ji was released from jail,he met Bhai Parmand who was

very famos writer and politician of that time. Bhai Parmand saw an

aspairing jorurnalist in Lala Jagat Narian , therefore he appointed as the

editorofhis newspaper Akash vani on coming back to jalandhar Lala Ji

started his Newspaper Jai Hind. He write an articlein his newspaper

explining the misery of theses refges to attracteverybodys attention . As the

Govt. and stop thepublication of Akash Vani

21

COMPANY PROFILE


22/70

In 1948 he publishes his own urdu newspaper HIND SAMACHAR and

once again started publishing his articles on the misary offugitives very

freely and openly. He led the Hind Samachar from the front and it was

under his wings that the foundation of growth was laid. For standing firm to

his ides he was shot dead by terrorists on sept,1981 on G.T Road near

Ludhiana

THE SECOND CHIEF:

Following the assassination of Lala Jagat Narian his older son Sh.RameshChander took hold of the company as Chief Editor . He was born on Dec

24,1926 at Lyallpur. Hegot hisBechelor of Sciene degree from DAV

College,Lahore.His journey in the world of journalism began in 1952.He

was elecedmember of Jalandhar Muncipal Committee in 1955.

Following the footprints of father ,he, at every available opportunity, sought

to promote the communal harmony and national integration .While

returning after addressing his last meetingofcomunal harmony , he was shot

dead by terrorist on May 12 ,1984 .

THE PRESENT INCUMBENT:

The only person assumed responsibilityas the Chairman and Managing

Director of the company after the dealth of Ramesh Chopra was noneelse

but his younger brother , Sh. Vijay Kumar Chopra- The present Chief.

Hewasborn on 31st January1932 andgarduated from D.A.VCollege

22


23/70

Jalandhar with Thompson Foundation Newspaper Management Course

from U.K

Today ,under his leadership the Group has grown into thirdlargest

newspaper concern in the country. He was honouredwith PadamShree

Awardfor his distinguishable achievements in fighting terrorism with the

mode ofhis newspaper in 1980.

OBJECTIVES OF HIND SAMACHAR LTD. :

Comingtogether in the beginning , keeping is progress ,working together is

success. The pioneer of Hind Samachar, Lala Ji wanted it to be an

independent newpaper. A medium that is free to criticize , appraise and

appraise the public of happenings and events. Thus ,independence

ofexpressing ideas,being the primary objective of the concern , it aims the

following :

1. Providing first hand information related to various happenings

worldwide within minimum time span.

2. Always basedqualit beforeprofits.

3. Reliable and Accurate knowledge of the news astray from the

misleading rumours .

4. Serving a healthy medium of entertainment , to quench the

need for knowledge of current affairs.

23


24/70

5. Providing the best source of advertisement among thepresent

medias by presenting the messagein most attractive way

6. Providing a common platform for every communityto

independently express andcritize theindividual view.

7. To spread the Hind Samachargroup to every possible concern

of the nationmaking it thehighestselling newspaper in both

rural and urban regions.

24


25/70

25


26/70

26

Chapter-3


27/70

Research Methodology is a way to systematically solve the

research problem. The Research Methodology includes the various methods

and techniques for conducting a Research. Marketing Research is the

systematic design, collection, analysis and reporting of data and finding

relevant solution to a specific marketing situation or problem. D. Slesinger

and M.Stephenson in the encyclopedia of Social Sciences define Research

as the manipulation of things, concepts or symbols for the purpose of

generalizing to extend, correct or verify knowledge, whether that

knowledge aids in construction of theory or in the practice of an art.

Research is, thus, an original contribution to the existing stock of

knowledge making for its advancement. The purpose of Research is to

discover answers to the Questions through the application of scientific

procedures. Our project has a specified framework for collecting data in an

effective manner. Such framework is called Research Design. Theresearch process followed by us consists of following steps:

o Developing the research plan: The second stage of this study

consists of developing the most efficient plan for gathering the

relevant data. The method for carrying out study is followed:

Sampling Plan Sampling can be defined as the section of some part of

an aggregate or totality on the basis of which judgment or an inference

about aggregate or totality is made. The sampling plan helps in decision

making in the following areas: -

27

RESEARCH


28/70

Sample size Sample size refers to the total numbers of items about which

the information is desired. The sample size of the study is 50.

Source Of Data

For the accomplishment of the required research paper, following

methodology was used: -

Data Collection

Both primary as well as secondary data was collected for the survey.

The primary data was collected through questionnaire (consisting of

multiple choice answers) and personal interview. This seems to be costliest

method but it is very accurate.

The secondary data was collected from organisations report,

brochures catalogues etc. Other Xerox notes were collected from the

respective heads. The copy of the questionnaire has been attached in the

end.

Data Presentation

To present data in an understandable way, different types of chart,

graphs and tables are used.

Period of study

The study has been taken under 6 weeks ( i.e 10 th June 2008 to 14th

July 2008 )

28


29/70

LIMITATIONS OF THE STUDYEvery study has some limitation. Their survey is accompanied by the

following limitations.

1. Communication gap Sometimes, there was a language problem

with the workers. The workers were made to understand the question but

some times they interpret the question wrongly and gave wrong replies

to the queries.

2. Indifferent Attitude: few of the workers react to the study

indifferent and do not provide any satisfactory answers.

3. Biased information Though every care has been taken to eliminate

sort of bias but considering the human factors the possibility of small

bias having coming up cant be ruled out.

29


30/70

30

Chapter-4


31/70

As we already studied much about wages, its meaning, concept and its

types. There is mainly one method of wage payment i.e. Time rate.

HIND SAMACHAR is adopting time rate method in concern. It is very

big and a reputed company. They pay wages to their workers on the basis of

time they work.

I. INCREASE IN MINIMUM RATES OF WAGES

The neutralization of minimum rate of wages is @ Rs. 5/- per point in the

case of monthly rated workman and 19 paisa per point in the case of daily

rates workman. Accordingly there is an increase of Rs. 35.00 in the

minimum rates of wages for every category of employees on monthly rate

basis. In case of daily rated workers there is an increase of Rs. 1.33 per

day.

31

WAGE PAYMENT IN HINDSAMACHAR


32/70

32


33/70

WAGES PAID UNDER TIME RATE IN HIND SAMACHAR

Basic H.R.A L.C.A W.A. Leave DayAmou

ntTotal E.S.I. E .P.F. P.F. F.P.F. E.S.I. Income ADV Ration Co- Mess Other Deduction

Salary Amt. (1.74) (3.67)(12%

)Tax Total P

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

a)3530.0

0200.00 50.00 0.00 0.00 28.00

3127.0

03360.00 3360.00 375.00

115.0

0260.00 50.80 0.00 0.00 0.00 0.00 0.00 0.00 433.00 2

b)3400.0

0100.00 0.00 0.00 0.00 30.00

3400.0

03500.00 3500.00 400.00

125.0

0283.00 61.25 0.00 0.00 0.00 0.00 0.00 0.00 469.25 3

(c)3575.0

0200.00 100.00 0.00 1.50 30.00

3575.0

03875.00 3875.00 429.00

131.0

0298.00 67.85 0.00 0.00 0.00 0.00 0.00 0.00 49683.00 3

d)4800.0

0

1300.0

00.00 0.00 0.00 30.00

4800.0

06100.00 6100.00 576.00

176.0

0400.00 106.75 0.00 0.00 0.00 0.00 0.00 0.00 6825.75 5

(e)7500.0

0

1050.0

01000.00 0.00 6.00 30.00 75.00 9550.00 9550.00 900.00

900.0

00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 900.00 8

P.F. Stand for Provider Fund

H.R.A. Stand for House rents allowanceL.C.A Stand for Local conveyance allowance

W.A. Stand for washing allowance

M.A... Stand for Medical allowanceP.A. Stand for Petrol allowance

T.A. Stand for travelling allowanceE.S.I. Stand for Employees State Insurance Corporation.

F.P.F. Stand for family pension fund.Bonus has been payable on salary is 20% p.a Provident fund on basic salary is 12 % p.a.

33


34/70

II Minimum rates of wages according to Act.

The rise in the minimum rates of wages is effective from 1-3-2006

Categories Monthly wages Daily wagesAs on

1-09-2005

Rs.

As on

1-03-2006

Rs.

As on

1-03-2006

Rs.

1. Unskilled 2225 2260 86.83

2. Semi Skilled

i.e. Upper

2440.65 2475.65 95.18

3. Semi Skilled i.e

Lower

2341.25 2376.25 91.28

4. Skilled i.e

Lower

2501.25 2536.25 97.42

5. Skilled i.e

Upper

2680.65 2715.65 104.33

6. Clerk, Time

keeper, Sales man,

Conductor, Store

keeper etc.

2540.05 2575.05 98.93

7. Accountant /

Graduate Clerk,

Assistant,

Supervisor, Car

driver , Cashier,

Steno typist

2661.25 2696.25 102.58

8. Truck / Bus / 2959.35 2994.35 115.03

34


35/70

III DEDUCTION MADE IN WAGES

With regard to the rules of Government and for the benefits of the workers,

HIND SAMACHAR deducts a some part of the income from the wages of

workers. The worker receives net wages after these deductions have been

made. These deductions are: -

1) The Employees State Insurance Act: -According to the Act

passed in 1948, it a compulsory and contributors health insurance scheme.

The financial contributions of the scheme are the insured persons

themselves, employees and the State Govt. also. The employees pay 1.754

% of their monthly wages and the employers rate of contribution is 4 % of

the total wage bill. The act covers all the employees whose monthly wages

does not exceed Rs. 6500. The scheme provides following benefits to

insured and his family.

Sickness benefit

Medical benefit

Dependents benefit

Disablement benefit

Funeral benefit

2. The Employees Provident fund Act, 1952:-

Retirement benefits in the form of provident fund family pension are

available to employer under this Act.

The scheme is applicable to these drawing wages up to Rs. 5000 per

month. UnderHIND SAMACHAR . The employees contribute 12 % of the

basic way (3.67% + 8.33 %) (Provident fund + pension)

The employee get provident fund after his retirement.

35


36/70

3). Advance - Sometimes the workers need the certain amount, so there

is provision that they can withdraw upto certain sum of amount. Then this

amount will be deducted from the gross wages of the workers.

4) Life Insurance Scheme: -For the purpose of mediclaim policies or

other benefits deductions are made with the written authorization of Life

Insurance policy to the Life Insurance Corporation

5. Fixed Conveyance allowed paid to employees

Not under the ESI ACT

The court held that labour charge for construction of building would

constitute of building 25 % of the total cost and the employer was liable to

make contribution at such amount, under the case of Regional Director

ESI Madras v/s Sundram Clayton Ltd. Moppet Dwisioen Madras.

The wage ceiling for motivation employees under ESI ACT

1948.

With affect from 1st April 2005 the wage ceiling for motivation of

employees under the employee's State Insurance Act, 1948, has been

enhanced from Rs. 6500 /- to Rs. 7500 /-. This is the virtue of another

amendment of Rule 52 of ESI (Central) Rules contribution will be not

deducted from employees daily wages. Earlier this limit was Rs. 40/- of

less per day.

CHANGE IN CONDITION OF SERVICE

Statutory requirement of notice under section 9-A of Industrial

dispute Act 1947.

36


37/70

Whenever an employer is required to effect change in the conditions

of the service of an employee. He is statutory required to give notice of 21

days to the effected workman.

The provision of 9-A will not be attracted if the proposed change

does not relate to any of the matter provided in schedule IV.

IV Influencing wage determination factors at AMBIKA

OVERSEAS

There are many factors which influence the wage determination. The

influence of these factors can also be seen in "HIND SAMACHAR".

These factors affect the wage system of the organisation. These are as

under:

37


38/70

The organization gives greater weight to following wage criteria i.e.

(a) Job requirement

(b) Minimum wages as per government laws.

While other factors such as qualification, past experience, ability to pay and

managerial attitude are accorded a secondary importance.

38

CRITERIA FOR WAGE FIXATION

Job Requirement

Ability to Pay

Qualification

Past Experience

Minimum wages as forGovt. Laws.

Managerial Attitude on

higher Post


39/70

V BENEFIT PROVIDED TO WORKERS IN HIND

SAMACHARHind Samachar supplies some benefits to its workers in order to retain the

people in organization and not to stimulate them to greater effort and higher

performance. The benefits are: -

1. Medical benefit: - It is in the form of free medical treatment in case

of sickness and injury. There is a dispensary inside the concern. The

concern also provides mediclaim to the workers to some extend.

2. Canteen: - The workers can avail the refreshment or can eat meals

bought by them from canteen at concessional rates. The concern

provides this benefit in order to give good working conditions to

employees.

3. Dress: -There is a proper dress code of AMBIKA OVERSEAS There

are both blue collar and while collar workers exist.

4. Bonus :- The company provide 20% bonus on the basic salary annually

VI LEAVE SYSTEM IN HIND SAMACHARUnder leaves system adopted in HIND SAMACHAR, they determine how

much total leaves can be available by the worker. The total number of

leaves provided in HIND SAMACHAR is 33

Earned Leaves - 30

39


40/70

National - 13

Total 33

Earned leaves: -These leaves are given to those workers who have

worked for not than 1 year in company and the workers must have worked

for 240 days in concern, only then they can avail these 30 leaves under

HIND SAMACHAR

Leaves without Pay: - If a worker avail a leave which is not covered

under above two cases then he will not get wages on that day i.e. the wages

for that particular day will be deducted from his gross wages.

VII SYSTEM OF CALCULATION OF OVERTIME IN

HIND SAMACHAR

Overtime is paid to workers on the following basis:

a) If the worker works more than the normal working hours like in the dayholdings, then:

Overtime = Salary /240 days * hours (per day) (240 minutes

in 4 hours)

b) Workers can be called for work for a minimum period of 4 years to work

overtime on paid holidays and closed days.

c) Overtime (Per Month) = Overtime x 2

40


41/70

41

Chapter-5


42/70

AMBIKA OVERSEAS is a big concern. There are many workers working

under it. A survey has been conducted during summer training to know the

response of workers towards the management and the concern. The data

analysis on basis of questionnaire filled by workers is given as below. The

survey is conducted on 30 workers.

JOB SATISFACTION LEVEL

Table 1.1

Ranks %age No. of workers

Excellent 16 8Very Good 26 13

Good 22 11

Satisfactory 20 10

Non-Satisfactory 12 6

Indifferent 4 2

Total 100 50

Fig 1.1

INTERPRETATION

42

16%

26%

22%

20%

12%4%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent

DATA ANALYSIS AND ITS


43/70

As seen above 42 workers in the organization at large have a job

satisfaction level & there are only 8 workers who are not satisfied or

indifferent.

P AY STRUCTURE

Table 1.2

Ranks %age No . of workers

Excellent 10 5

Very Good 16 8

Good 16 8

Satisfactory 24 12Non-Satisfactory 30 15

Indifferent 4 2

Total 100 50

Fig. 1.2

INTERPRETATION

43

10%

16%

16%

24%

30%

4%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


44/70

As seen above 33 workers in the organization are very happy or satisfied

with the pay structure & there are only 17 workers who are not satisfied

with the pay structure.

ANNUAL INCREMENTS

Table 1.3

Ranks %age No of workers

Excellent 10 5

Very Good 30 15

Good 36 18

Satisfactory 8 4


Indifferent 0 0

Total 100 50

Fig. 1.3

INTERPRETATION

It is clear from the aforesaid fig. that 42 workers annual increment seems to

be excellent and satisfactory and only 8 workers who are not satisfied.

44

10%

30%

36%

8%

16%0%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


45/70

TIMELY PAYMENTS

Table 1.4


Excellent 88 44

Very Good 10 5

Good 2 1

Satisfactory 0 0


Indifferent 0 0

Total 100 50

Fig. 1.4

INTERPRETATION

From the above we can see that 44workers agreed that timely wages are

excellent, 5 very good & 1 good .It has never been late even for a single

day, half day or hour.

PAYMENT OF ADVANCE

45

88%

10%

2%

0%0%0%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


46/70

Table 1.5


Excellent 10 5

Very Good 16 8

Good 16 8Satisfactory 24 12


Indifferent 4 2

Total 100 50

Fig. 1.5

INTERPRETATION

From the aforesaid data it is clear that 33 workers agreed that whenever

they need advance they dont have to face any problem and only 17 of them

are not satisfied.

46

10%

16%

16%

24%

30%

4%

ExcellentVery Good

Good

Satisfactory

Non-Satisfactory

Indifferent


47/70

RECOGNITION OF GOOD WORK

Table 1.6



Good 20 10

Satisfactory 24 12


Indifferent 6 3

Total 100 50

Fig. 1.6

INTERPRETATION

From the aforesaid information it can be seen that 6 workers are very happy

with the recognition given to their good efforts, 12 workers are satisfied

while 17 workers are totally unsatisfied with.

REWARDS FOR EFFICIENCY

Table 1.7


47

12%

4%

20%

24%

34%

6%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


48/70

Excellent 8 4

Very Good 26 13

Good 18 9

Satisfactory 16 8

Non-Satisfactory 24 12Indifferent 8 4

Total 100 50

Fig. 1.7

INTERPRETATION

As seen from the above data 12 workers are unsatisfied, they want rewards

in monetary terms or whatever but they are not getting any reward at all.

However 4 workers find it very excellent and 13 workers rank it very good.

48

8%

26%

18%16%

24%

8%

Excellent

Very GoodGood

Satisfactory

Non-Satisfactory

Indifferent


49/70

FACILITIES ASSOCIATED WITH JOB SATISFACTION

Tabel 1.8



Good 16 8

Satisfactory 32 16


Indifferent 2 1

Total 100 50

Fig. 1.8

INTERPRETATION

30 workers agreed that they are provided with good facilities associated

with the job 16 workers find it satisfactory and there is 4 workers who arenot satisfied with it.

49

20%

24%

16%

32%

6%

2%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


50/70

WORKING ENVIRONMENT

Table 1.9



Good 18 9

Satisfactory 30 15


Indifferent 0 0

Total 100 50

Fig. 1.9

INTERPRETATION

13 workers said that their working environment is very good, 9 workers

rank it excellent, 15 workers rank it as satisfactory and there are 4 workers

who find it to be unsatisfactory.

SUPERVISORS & MANAGERS RELATIONS

Table 1.10


50

18%

26%

18%

30%

8% 0%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


51/70

Excellent 44 22

Very Good 30 15

Good 14 7

Satisfactory 6 3

Non-Satisfactory 6 3Indifferent 0 0

Total 100

Fig. 1.10

INTERPRETATION

Workers were having very good relationship with the supervisors &

managers, 15 workers of them say the interpersonal relations were very

good, 22 workers rank it excellent, 7 good and only 3 workers were not

satisfied.

51

44%

30%

14%

6%

6%

0%

Excellent

Very Good

GoodSatisfactory

Non-Satisfactory

Indifferent


52/70

LABOUR WELFARE ACTIVITIES

Table 1.11



Good 30 15

Satisfactory 26 13


Indifferent 4 2

Total 100 50

Fig. 1.11

INTERPRETATION

For the aforesaid data it is clear that 12 workers are unsatisfied with the

Labour welfare activities in the organization, 2 workers are indifferent , 4

workers rank them excellent , 4 very good and 15 rank them as good.

JOB SECURITY

52

8%8%

30%

26%

24%

4%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


53/70

Table 1.12


Excellent 68 34

Very Good 10 5

Good 4 2Satisfactory 8 4


Indifferent 6 3

Total 100 50

Fig. 1.12

INTERPRETATION

It is clear from the above data that 34 workers showed excellent in job

security, 5 workers rank them as very good , 2 good & 4 satisfactory & 2

are not satisfied .

HOW WORKERS RATE THE STAFF

Table 1.13


Excellent 14 7

53

68%

10%

4%

8%4%

6%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


54/70

Very Good 24 12

Good 28 14

Satisfactory 16 8


Indifferent 4 2Total 100 50

Fig. 1.13

INTERPRETATION

It is clear from the aforesaid data that 7 workers rank the

management/organizational staff as excellent. However 12 wrokers ranks

staff as very good & 14 good , 8 workers rank them as satisfactory and only

9 workers are not satisfied with the organization.

54

13%

23%

28%

15%

17%

4%

Excellent

Very Good

Good

Satisfactory

Non-Satisfactory

Indifferent


55/70

SWOT ANALYSIS OF HINDSAMACHAR

STRENGTHS

HIND SAMACHAR is reputed newspaper inwhole country

They provides timely payment to their employees

They provide excellent working environment.

All the workers are satisfied with the job provided to them.

Most of the workers are satisfied with method of wage payment adopted

by the company.

WEAKNESS

Majority of workers are not well educated

Pay structure does not yield more degree of motivation.

They dont provide advance wages & salaries if needed by them.

Workers want extra increment from the company.

OPPORTUNITIES

Workers should be provided with reward based wage system so that

they are encouraged to work efficiently.

The company should start bonus & premium plans

THREATS

Pay structure not adequate

No extra increment

No consultation with the workers regarding decision concerning them.

55


56/70

56

Chapter-6


57/70

FINDINGS OF THE STUDY

AMBIKA OVERSEAS is very reputed and big organisation

during my training these are the findings of the company.

1. Many steps are taken by organisation in order to motivation

employee.

2. The wages paid to workers are according to the revised Govt. Polices.

3. The grievances of workers are attended by the higher authorities but

are not.

4. The salary are given to the workers in time.

5. The company provides better facilities to workers and good working

condition.

6. The company give 20 % bonus to their workers.

7. Many of the workers is not well aware of E.S.I and E.F.P.

8. Conditions improvement program through research and Development

to Human Development.

9. Many workers are not satisfied with their wages.

57


58/70

SUGGESTIONS

1. Order workers must be given preference over the youngsters as they

have been working since long .

2. Nor doubt, the company pays same salary as prescribed by the

government, it should give financial incentives very often to the

workers in order to meet the necessities of life.

3. The workers must get sufficient wages so that they can satisfy their

needs.

4. Each and every worker must be made aware of E.S.I. and E.P.F.

norms.

5. Workers participation should be given more importance.

6. The Grievance handling procedures should be upgraded .

58

CONCLUSION


59/70

Ambika overseas, has efficient and experienced management. It has indeed

an great experience working with them. The company should work upon its

opportunities so as to reduce its weakness, minimizes threats and mamize

strengths of the company. It should follow certain tactics in order to

motivate low-skilled service workers, providing more flexible work

schedules can motivate them and filling such jobs with youngsters and

retired who financial need is less unless the pay and benefits are

significantly increased, high turnover has to be expected in such jobs. This

can be somewhat offset by widening the recruiting net, making these jobs

more appealing and raising pay level.

Personnel management deals with optimum utilization human

resources of a concern. It caters to the needs of the employees and fixes a

suitable wage system. A wage system should be designed keeping in view

the efficiency and the type of work involve. A suitable wage system

satisfies the needs of workers

59


60/70

60


61/70

Ahuja, K.K. " Personnel Management ", Published By, " Kalyani"

Edition : 2003

Ashwathappa. K "Human resource and Personnel Management"

Published by "Kalyani ", Edition 2003

J.Walker, Brucej Personnel Management Published by Tata McGraw

Hill

Kothari , C.R., Research Methodology (Method and Techniques),

Wishewa Prakshan, 1999.

Memoria, C.B. Personnel Management, Himalaya Publishing House

Bombay, 1984.

Sharma, R.K. Gupta, Shashi K. Business Management Kalyani

Publishers, Delhi, 2001.

Websites:

www.wikipedia.com

61

BIBLIOGRAPH
http://www.wikipedia.com/http://www.wikipedia.com/


62/70

62


63/70

QUESTIONNAIRE

1. JOB SATISFACTION LEVEL

Excellent Very Good Good

Satisfactory Non-Satisfactory Indifferent

2. PAY STRUCTURE



3. ANNUAL INCREMENTS



4. TIMELY PAYMENTS



5. PAYMENT OF ADVANCE



6. RECOGNITION OF GOOD WORK



63


64/70

7. REWARDS FOR EFFICIENCY



8. FACILITIES ASSOCIATED WITH JOB PHYSICAL



9. FACILITIES OF TECHNICAL JOB



10. WORKING ENVIRONMENT



11. SUPERVISORS & MANAGERS RELATIONS



12. GRIEVIENCE HANDLING PROCEDURE



13. LABOUR WELFARE ACTIVITIES



64


65/70

14. JOB SECURITY



15. HOW WORKERS RATE THE STAFF



DEMOGRAPHIC PROFILE

Name:__________________________________

Age : A. 18-30 Years B. 30-45 Years C. 45-60 Years D. 60 and above

Qualification : ____________________________

Contact No.______________________________

THANKS FOR PARTICIPATING IN SURVEY

65


66/70

ACKNOWLEGEMENT

I feel immense pleasure to give the credit of my project work not only to one

individual as this work is integrated effort of all those who concerned with it. I

want to owe my thanks to all those individuals who guided me to move on the

track.

This report entitled Wage Payment is the outcome of my summer training atAmbika Overseas, Jalandhar City.

I sincerely express my gratitude and lot of thanks to Manager and to the staff of

Ambika Overseas for helping me in completing my project work and making it a

great success.

I would like to express my deep sense of gratitude to my subject

teacher, Mrs. _____________, Lecturer in Commerce, _________,

Jalandhar who introduced me to the subject and under whose guidance

I am able to complete my project.

Last but not least, I would thank all my friends, faculty members and all

respondents who rendered their precious time for contributing their skills and tofill the questionnaire, which made my project more appealing and attractive.

_________________

66


67/70

PREFACE

Without practical training, management education is meaningless so long with the

theory; practical training is provided to management students to expose them to

the actual working environment of any organization. Such training provides a

framework of knowledge relating to the concepts and practices of the assigned

topics in the organization.

Human beings are a resource to an organisation like any other material on

economic resources they represent an investment whose development and

utilization require managing. There is a fundamental truth in the clich that

" people are an organisaion most important asset". In every orgnisation

human resources are a pivotal variable without which the inanimate assets

are worthless 'Like cash put into a saving account'

Human resources can appreciate in value. Therefore, human resources need

to be understood in their proper perspective and utilised effectively to

achieve the goals of can organisation. The management of human

resources is a very complicated and challenging task for those who are

entrusted with the successful running of an organisation.

Wages in the widest sense mean any economic compensation paid by

the employer under some contract to his workers for the services rendered

by them. Wages, therefore, include family allowance, relief pay narrow

sense, wages are the price paid for the services of labour in the process of

production and include only the performance wages.

In this project report I have studied the deduction made from the

gross wages of the workers, type of wages, factors influencing

determination of wages, hand behind maintenance records benefits provided

to the workers and leave system in the Co.

67


68/70

CONTENTSCHAPTER 1. INTRODUCTION TO PROJECT

Introduction to Wages

Concept of Wage Payment

Concept of Incentive Schemes

CHAPTER 2. COMPANY PROFILE

Company Profile

Management of AMBIKA OVERSEAS

Product Range of AMBIKA OVERSEAS

CHAPTER 3 . RESEARCH METHODOLOGY

Objectives of the Study

Research Methodology

Limitations of study

CHAPTER 4. WAGE PAYMENT IN AMBIKA OVERSEAS

Wage Payment in AMBIKA OVERSEAS

Incentives Schemes in AMBIKA OVERSEAS

CHAPTER 5. DATA ANALYSIS AND INTERPRETATION

Data analysis and Interpretation

CHAPTER 6. FINDINGS, SUGGESTIONS & CONCLUSION Findings of the Study

Suggestions and Conclusion

BIBLIOGRAPHY

ANNEXURE

Questionnaire

A

PROJECT REPORT ON

68


69/70

SUBMITTED TO

GURU NANAK DEV UNIVERSITY, AMRITSAR

In partial fulfillment of the requirement for the

degree of

Bechular in business administration -II

Submitted To: Submitted by:

Mrs.Ipenderjeet Kaur Chhavi Pasricha

Lecturer in Commerce B.B.A-IIH.M.V College Roll No.9557

Jalandhar Univ. Roll No.

Regd. No.

Session (2008-2009)

Hans Raj Mahila Maha Vidyalaya

69


70/70

(jalandhar)

anaging

irector

Cum-

hairman

DEPUT

Y

MANAG

ER

Ambika Oversaes Project

Documents

Transcript of Ambika Oversaes Project